Palmer calls in King to iron out troubled project
Mr King has been named as a "special adviser" to Hong Kong group CITIC Pacific, which is developing the troubled Sino Iron project on Mr Palmer's tenements.
Mr King spent 23 years as the chief executive of Leighton's engineering, construction and mining contracting business, and CITIC said its board and senior management would benefit from his extensive experience.
"His advice will be particularly helpful in respect of the Sino Iron project," CITIC said in a statement.
Mr King was feted by Leighton shareholders for much of his 23 years at the helm, but several major investments made during his time in charge turned sour after his departure in 2010.
Leighton was forced to write down more than $1 billion and announce profit downgrades after investments in Victoria's desalination plant and Brisbane's airport link went bad. The company was also hauled over the coals for its poor corporate governance and market disclosure record.
Since retirement, Mr King has become deputy chairman at Ausdrill and was recently linked with Indonesian coal miner Bumi.
He could not be contacted on Thursday.
Mr King will have his work cut out at Sino Iron, which should have been completed nearly four years ago and has blown out its budget by close to $7 billion.
Continued problems at the magnetite iron project were confirmed within the past fortnight, when CITIC said that more time would be needed to assess the stability and reliability of the first production line on the project.
The project has also become mired in a legal stoush between CITIC and Mr Palmer over payment of royalties.
A court ordered in May that Mr Palmer was owed $400,000 worth of royalties, dating back to 2008.
Frequently Asked Questions about this Article…
The Sino Iron project is a large magnetite iron ore development on tenements owned by Clive Palmer in Western Australia. It is being developed by Hong Kong group CITIC Pacific and has become a high-profile, troubled project due to delays and cost overruns.
CITIC Pacific named Wal King as a "special adviser" to help sort out the stalled Sino Iron project because he spent 23 years leading Leighton’s engineering, construction and mining contracting business. CITIC said his experience should benefit its board and senior management and be particularly helpful on the Sino Iron issues.
According to the article, the project should have been completed nearly four years ago but remains stalled, has blown out its budget by close to $7 billion, and recently required more time to assess the stability and reliability of its first production line—signs of significant delays and operational challenges.
While the article doesn't give financial forecasts, it highlights major operational delays and a near $7 billion budget overrun, which are material issues investors typically monitor. Such problems can lead to higher costs, deferred revenue and increased project risk, so investors often watch for management updates, cost-control plans and production milestones.
The legal stoush concerns payment of royalties to Clive Palmer. A court ordered in May that Palmer was owed about $400,000 in royalties dating back to 2008, according to the article.
Wal King was long-time chief executive of Leighton’s construction and mining business and is credited for much of his tenure, but after he left several major Leighton investments turned sour, forcing the company to write down more than $1 billion and face criticism over corporate governance and market disclosure. Investors may view his appointment as bringing both significant industry experience and a mixed historical record to the table.
CITIC confirmed it would take more time to assess the stability and reliability of the first production line on Sino Iron. The company also announced it had appointed Wal King as a special adviser to help the board and senior management address the project’s problems.
Investors should look for CITIC Pacific updates on the assessment of the first production line, any revised completion timelines or cost estimates, news on the legal royalties dispute with Clive Palmer, and announcements about management actions stemming from Wal King’s advisory role—these items will signal progress or further risks for the project.
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